Index funds want to continue being treated as “passive” investors

FEW LEVERS FDICof economic power are as mighty as the ability to determine which firms, industries and individuals have access to capital. Authoritarians wield control of banks to tighten their political grip. John Pierpont Morgan used his influence to dominate the rail and steel industries. Might asset managers such as BlackRock and Vanguard join this formidable club by gaining dangerous levels of control over America’s banks? That is the worry of the Federal Deposit Insurance Corporation (), a banking regulator.